Rabobank seeks to grab a piece of the Canadian farm lending market

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Rabobank seeks to grab a piece of the Canadian farm lending market
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Netherlands-based Rabobank NA is aiming to grab 10-15% of the Canadian farm lending market within 15 years

, as it aims to shake up a sector dominated by government and domestic banks, its new Canadian agricultural head told Reuters on Wednesday.

Still, Rabobank is expanding into farm loans in a country that has proven tough for foreign lenders, resulting in many global institutions retreating in recent years. In November, HSBC became the latest foreign bank to seek to leave Canada, when it announced the sale of its Canadian unit to Royal Bank of Canada for C$13.5 billion.

Rabobank expects Canadian farm lending to be profitable from the start and plans to announce hiring plans shortly, she said. Many Canadian farmers prospered last year as wheat and canola prices spiked due to Russia’s invasion of Ukraine. Rabobank will initially focus on farm lending in the Prairie provinces of Manitoba, Saskatchewan and Alberta, offering loans for land and equipment purchases, operations and sustainable initiatives, such as installing biodigesters to produce renewable natural gas.

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